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The Trump administration has indicated that widespread layoffs among federal employees could commence if President Donald Trump determines that discussions with congressional Democrats to resolve the partial government shutdown are “completely deadlocked,” according to a senior White House official on Sunday.
As the shutdown reaches its fifth day, Kevin Hassett, director of the White House National Economic Council, suggested on CNN’s “State of the Union” that there remains hope that Democrats might concede, preventing a costly shutdown and job cuts that White House budget director Russell Vought has warned about.
“President Trump and Russ Vought are preparing to take action if necessary, but they’re optimistic that this can still be avoided,” Hassett said.
He added, “If negotiations truly go nowhere, layoffs will begin. However, everyone remains hopeful that a fresh start at the beginning of the week will persuade the Democrats to see that avoiding layoffs simply makes sense.”
President Trump referred to the potential job cuts as “Democrat layoffs” during a Sunday briefing, asserting, “Any layoffs are solely their fault.”
No Signs of Negotiations
There have been no concrete signs of talks between congressional leaders since Trump’s meeting with them last week. The shutdown started on October 1, coinciding with the beginning of fiscal year 2026, after Senate Democrats rejected a short-term funding bill that would have kept agencies operational until November 21.
Senate Democratic leader Chuck Schumer told CBS’s “Face the Nation” that the deadlock could only be broken through further negotiations between Trump and the four top congressional leaders.
Democrats are demanding a permanent extension of expanded premium tax credits to help Americans afford private health insurance under the Affordable Care Act, along with guarantees that the White House won’t unilaterally cancel funding agreed upon in any deal.
Senate Majority Leader John Thune stated he is open to addressing Democratic concerns but emphasized that Congress must first agree to reopen the government.
Trump also expressed interest in healthcare reform, focusing on Republican priorities to fix the ACA—commonly known as Obamacare—calling it a “disaster” and stressing the need for improvements.
Senate Vote Scheduled for Monday
Members of both parties in the Senate have been holding informal discussions, trying to find common ground on healthcare and other pressing issues to resolve the shutdown.
When asked if they are closer to a deal, Democratic Senator Ruben Gallego replied, “Not at this point.”
The Senate is scheduled to hold its fifth vote on a stopgap funding measure on Monday. This measure has already passed the Republican-controlled House of Representatives, as well as a Democratic alternative. Neither bill is expected to garner the 60 votes necessary for passage.
With the Senate split 53-47 and only three Republicans crossing party lines to support the House funding bill, Democrats and Republicans face an uphill battle to reach a majority. To pass, the measure needs at least eight Democratic votes, which so far has only happened with three senators.
John Thune told Fox News’ “Sunday Morning Futures,” “It’s either open the government or face the consequences.”
The choice appears clear: reach an agreement or face continued shutdown and government closure.
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